On the New Long March

The New Long March — Cui Jian[Taogu Ba]
Think what you do, do what you think — it’s rifles and Xiaomi
There are many principles, always said to be big guns and bombers
How to say, how to do — only then can it truly be yourself
How to sing, how to sing — only then can your heart be proud

Currently, the market environment is called the AI quantitative market by some, and the structural market by others. The name doesn’t matter. We can see small-cap stocks clustering in quant strategies, and a careless hit can be a big blow. Mid-cap institutions also don’t do much; when they sell, even nine oxen can’t hold back. Not only are retail investors finding it hard to make money, but top retail whales and small funds are also struggling. The once-famous top-tier whales may not replicate their glory today. On this new Long March, a new generation of heroes may emerge. We must keep improving and perfecting ourselves. Learning is endless. Today, I won’t talk about techniques, only principles. Welcome to comment and interact!

First, the significance of review: personal review serves trading, not to attract attention or generate traffic, but to make decisive judgments when entering and exiting the market. I can write extensively, and my writing skills are decent, but it’s unnecessary.

1. Extract useful market information for the day to reinforce the pattern system. Those with intent can absorb useful insights, form muscle memory, and be one step ahead during trading. I’ve said before, the essence of stock price movement is — capital momentum. The bidding process determines 70% of the day’s trend, plus the first five minutes of opening decide 90%, leaving 10% for surprises or black swans. After all, the stock market is a game of probabilities.
2. Building the ladder of consecutive limit-ups: the previous emotional cycle strategies are gradually fading. Big caps and small caps often dance together, but regardless, unexpected and expectation gaps are unavoidable. Even the so-called leaders need market validation before strengthening. Simple strategies include single-limit, reduced-volume, solid, increased-volume, and industry chain plays, each corresponding to different entry postures.
   • Analyze how the streak stocks are selected, where winners excel, and where losers fail.
   • Define target stocks with expectations, and how they can advance the next day.
   • When encountering a major upward cycle, define key nodes. During the chaotic low-volume period, there’s a “hammer” node. Quantitative analysis doesn’t recognize institutions or whales; whales don’t work, so it’s unsolvable.
3. Sector themes: the only sustainable principle is the scale of limit-ups. Only the first breakout and the second reflow with reinforcement are useful for deduction. Other times are purely subjective guesses. Quantitative institutions can recognize capital attack and exit signals faster, so good stocks are often hard to buy. If bought, pray for protection — not a trap. Over-explaining can mislead. Many people see multiple bloggers and teachers daily; they understand deeply. Here, I’ll just mention briefly.
4. Why not list a bunch of first-limit stocks? In A-shares, 90% of first-limit limit-up stocks are garbage, and 90% of retail investors buy 90% garbage. Harsh but fair. First-limit stocks are mostly controlled by quantitative models. The next day’s expectations are often chosen by consensus funds to advance. How far they go is uncertain. The best entry is at the first or second limit-up, especially small caps. The third level tests understanding; beyond that, risks become uncontrollable — it’s no longer the glorious era of whales.
5. The sentiment strength indicator can’t fully reflect the market’s short-term true sentiment. Quantitative institutions drive public sentiment. Short-term sentiment is dominated by short-term funds, combined with a large amount of follow-on capital. During pullbacks and peaks, treat differently: during rises, not all stocks rise; during declines, chaos ensues.
6. Focus in trading: don’t rely solely on leader mentality or subjective high expectations. Leaders must be validated by the market’s surprise. The bigger the expectation, the more likely to be disappointed. Once a leader is established, the room for growth is limited. Whether you can get in early depends on the pattern system. It’s about mastering a skill to the extreme, then applying it fully. Don’t look at or study others’ ways of making money; don’t seek many trades, but aim for fast, accurate, and stable entries.
   • First, handle existing positions: define their status and influence. If the bidding is pessimistic or the intensity is blocked, consider halving or closing positions to make holdings comfortable, reduce early-morning effort, and save energy for new targets.
   • For consecutive limit-ups: if the target stock shows no clear signal, give up decisively. If it does, prioritize entry. Focus on core stocks with aura; no need to watch every one.
   • For first-limit stocks: pre-select familiar stocks with good aesthetics, avoid subjective judgments. Use combined bidding and volume models, e.g., recent stocks like Zhongtung Equipment, Jinzengda, Ganneng Co., Beijing Keli. These stocks test understanding and speed; on Fridays, I tried identifying before 9:30 am at home, otherwise reaction is too late after open.
7. Rebound mode: institutional trend-based capital structures make this approach increasingly popular. The strong support and oversold dips are pre-identified for observation. Recent examples include Baichuan Shares, Hengdian Films, Hangdian Co., Zhongtung Equipment. I’ve also compiled data from the past six months, and it’s time to assign a specific position.

Tea-picking craftsmanship: for pre-dawn tea, only select the tenderest, thinnest buds, and full leaves. After finishing, move to the next tea tree, then the next season. Stock selection is similar: identify five-in-one criteria of capital energy—emotion, energy, guidance, bidding, time-sharing, and limit-up signals—fusing into high-probability models. If they match, act. Simple and replicable. The importance of logical attributes is diminishing; when stocks rise too much, great scholars will debate. When a stock hits the limit, walk away without attachment.
This article is written for myself and for those who happen to read it with intention. Trading may not be complicated in the end. Repeating simple things can lead to success!